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On the Gains from Tradable Benefits‐in‐kind

Evidence for Workfare in India

Bibliographic Data

ID9723290
AuthorsMartin Ravallion (0000-0002-5572-4183, Georgetown University and NBER, corresponding author)
Year2022
Volume89
Issue355
Pages770-787
Publication date2022-07-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueEconomica (JOURNAL)
Journal identifiersISSN: 0013-0427 • E-ISSN: 1468-0335
PublisherWiley (PUBLISHER • GB)
DOI10.1111/ecca.12413
OpenAlexW4214821021
LanguageEN
References cited21

Widely‐used in‐kind benefits are often rationed across potential participants in social programmes. This poses an operational challenge in implementation with limited public information. One possible solution is to randomize assignment given the available information. However, as this paper shows, neither the purposive targeting of in‐kind benefits nor randomized assignment is likely to yield a competitive equilibrium given private information on diverse personal gains. The paper characterizes equilibrium assignments and the implications for policy and evaluation. The theory is applied to an antipoverty programme providing rationed jobs on rural public works in a poor state of India. Special‐purpose survey data reveal large unexploited gains from allowing tradable assignments. The paper shows that the potential gains exceed those from poverty targeting and stylized cash transfer options. Realizing the scope for poverty reduction by such means will undoubtedly require complementary efforts in reducing the influence of other market and institutional factors creating poverty in the first place, including inequalities in access to credit and knowledge

Business · Cash · Cash transfers · Economic growth · Economics · Inequality · Macroeconomics · Market economy · Poverty · Poverty reduction · Public economics · Scope (computer science) · Stylized fact · Workfare · Agricultural risk and resilience · Computer Science · Finance · Income, Poverty, and Inequality · Poverty, Education, and Child Welfare

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Citation velocityhistorical
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